Hong Kong-based private equity firm Transwell Corporation has submitted an unsolicited restructuring proposal for the debt-laden SriLankan Airlines, while a state-appointed committee works on its own recommendations over the next six months.
A Hong Kong private equity firm has voluntarily submitted a turnaround proposal for SriLankan Airlines, according to Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku. Transwell Corporation Limited's unsolicited bid comes as the government simultaneously pursues a structured review process through a state-appointed committee headed by Hans Wijasuriya, which is expected to complete its recommendations within six months.
The government plans to consider Transwell's proposal alongside the committee's findings before deciding whether to issue an Expression of Interest or Request for Proposal to the broader market. Kodithuwakku stated that the final approach will depend on the business model recommended by the state panel. The committee has already begun collecting industry data to evaluate restructuring options for the state-run carrier.
SriLankan Airlines faces mounting financial difficulties. The airline recorded a net loss of 12.6 billion rupees for the period ending August 2025, more than triple the 4.2 billion rupee loss recorded in the previous year. Currency losses accounted for a significant portion of these declines, reaching 8.5 billion rupees as the Sri Lankan rupee depreciated from approximately 292.58 against the US dollar in December 2024 to 302.44 by August 2025. The airline's accumulated losses have ballooned to 631.5 billion rupees by August 2025.
The carrier's vulnerability to currency fluctuations stems from its substantial foreign exchange-denominated debt owed to local banks and international bondholders. Analysts attribute much of the 2025 currency depreciation to weaknesses in the Central Bank's operating framework, which amplified forex losses across state enterprises. Official audited financial results for the second half of the 2025/26 financial year have not yet been released.
